we begin with breaking news on this friday morning. >> a crumbling case against former banking titan dominique strauss-kahn. serious issues with his accu accuser's credibility. another developing story, first football, now pro basketball locks out its players putting league business on hold. a creepy crawlie in coach class. stung by a scorpion. >> from abc news, this is "america ts ining.g." he could be free on bail later today ananthat brings up serious questions. >> this is a stunning turn in a case that's been closely.

. >> reporter: abc news has learned there are significant issue issues about credibility. prosecutors are expected to tell the court they do not believe much of what the accuser has told them. which could lead to charges being dropped. from the beginning, strauss-kahn has maintained that he did not assault a maid at a luxury new york city hotel. >> in our judgment, once the evidence is reviewed, it will be clear that there was no element of forcible compulsion in this case whatsoever. >> reporter: in a remarkable change of fortune, prosecutors have informed dominique strauss-kahn's lawyers that they have discovered the accuser had a questionable relationship with at least one alleged drug dealer. and that the accuser also discussed the financial benefit of pursuing charges against

strauss-kahn. according to law enforcement officials and others familiar with the case. since the allegations, strauss-kahn has become a pariah. once considered a candidate for french president, strauss-kahn was forced to step down from his position as head of the international monetary fund. today the judge in the case is expected to ease the tough bail conditions and sources say even more details about holes in the accuser's credibility will be revealed. tahman bradley, abc news. and in france this morning these new developments are welcome news. strauss-kahn supporters are holding out hope he may be able to revive his presidential bid. our "gma" team is also working this developing story with n n details coming up at 7:00. following another developing story. the national basketball league has shut out its players. their contract expired at midnight with the two sides very far apart. all league business is now on hold, including the free agency period that was supposed to start today.

the last lockout was in 1998 and it didn't end until the season was nearly half over. the nigerian-american man who managed to fly cross country as a stow-away is in court in los angeles. the passenger was able to board a virgin atlantic flight with an outdated boarding pass and a fake i.d. though the incident was not terrorist-related lawmakers say it raises troubling questions. >> almost ten years since september 11th and the most basic element of security has been breached. it's inexcusable. >> reporter: it was the middle of the flight before the airline crew discovered they had an extra passenger on board. taxpayers will be paying to defend legendary boston crime boss whit"whitey" bulger. a judge has decided he can't pay for his own attorney. bulger was taken into custody in california last week along with $800,000 in cash. the e thorities are keeping the money because they say it was earned illegally. bulger will stand trial for taking part in 19 murders. bowing to presidential

pressure the senate has canceled its vacation next week to work on the budget crisis. despite the schedule change there's no indication republicans and democrats are anancloser to resolving their differences. the white house has indicated it wants a deal done by july 22nd. it's a first on the presidential campaign trail. congresswoman michele bachmann has revealed she suffered a miscarriage. the minnesota republican made the comment during a stop in south carolina. >> after our sec child >> after our second child. was born we became pregnant with a third baby. and it was an unexpected baby. but of course we were delighted to have this child. and the child was coming along. and we ended up losing that child. >> bachmann is getting high marks for speaking so candidly about a painful family tragedy. political analyst mark hall principle has been suspended from msnbc after making an off-color remark about president obama. hall principle, editor at "time" magazine appeared on the "morning joe" show when he

uttered the comment. we have bleeped out the offensive word. >> i thought he was kind of a [ bleep ] yesterday. >> oh my god, delay that. delay that. what are you doing? >> i think the president -- >> i can't believe you -- i was joking. don't do that. >> i can't explain why i did it. it was inappropriate, it was disrespectful. i've already apologized, i will agagn to the president,t, and s i'm sorry, i'm sorry to the viewers. it was kind of thing that you can't really explain but i take full responsibility for it. it was a mistake and disrespectful and i shouldn't have said it. >> msnbc and hall principle quickly apologized for the remark. out of nowhere a physical attack on the president of france. nicolas sarkozy was shaking hands with the crowd when a man grabbebehim suddenly. sarkozy's s curity tackled the man. the 32-year-old attacker was unarmed and is still being questioned. good news from firefighters battling that raging wildfire in los alamos, new mexico. they say despite high winds and

hot conditions, fire lines along the perimeter of the nation's top nuclear laboratory are holding. the fire has burned 135 square miles and officials believe it's on track to become the largest forest fire in new mexico history. could use a break from the weather. >> which in some cases hasn't been helping. let's take a look at this morning's weather from around the flation. we have major heat in the middle of the country with ten states under advisories or warnings. severe storms in the northern plains and thunderstorms along the gulf coast. rain from tropical storm oar lien leaves south texas but it does linger with showers. nice along both coasts. a scorcher in the midwest. 94 in kansas city. 95 in omaha. 97 in minneapolis. new york is a pleasant 84. boston 78. 81 in l.a. 77 in portland. average temperatures in the east. 89 in baltimore. 70 in seattle. 92 in sacramento. talk of a major departure from t t obama administration. then a fast food first. "consumer reports" names the best chains in the country.

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@ú?n talks between the governor and legislature stalled over taxes and a $5 billion budget deficit. the shut-down coming right before the holiday weekend means state parks and the minnesota zoo will be closed. the agriculture department says the nation's farmers have planted the second-largest corn crop of the last 70 years. the news is driving down the price for corn futures. that means food prices could be lower than expected by fall. hewlett-packard is trying to make a big splash with its new touch pad tablet computer. you can find the touch pad in stores today. "usa today's" ed banks says it has too few apps, also too many glitches, but he did find real positives.

>> the standout feature is web os. originally developed for the palm prix. this is a playing card metaphor where all the apps and tasks you're running appear as playing cards. when you're done you flick it off the screen. it's easy to switch among them. >> hp is deploying workers to best buy stores to demonstrate how to operate the turn pad. smaller regional chains fare better than nationally known giants in "consumer reports" new ranking. mcdonald's burgers came in dead last. the survey said in and out had the best burgers, chipotle had the best mexican food. is it wrong that story made me hungry? >> mcdonald's fries, got to say. >> they're pretty good. coming up next, never before seen images from the wreck of the "titanic." >> not what you'd expect to find or want to find on your next flight. a scorpion on the plane. where's samuel l. jackson?

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without dyes, parabens, or harsh sulfates. so skin feels pure and healthy. [ female announcer ] new from neutrogena naturals. a mangled mess in rural kentucky. 15 train cars carrying vehicles from a ford trucks plant derailed yesterday on a strtrch of tracks that had seen similar accidents. luckily, nobody there was hurt. a look at morning road conditions. rainy on i-37 from san antonio to mcallen, texas. could be flooding near the rio grand. wet along i-10 houston to jacksonville. on i-94 wisconsin to busy make. take care on i-25 and on i-95 north of portland, maine. >> if you're playing, heading out for the weekend, expect delays in minneapolis and miami. the high-profile casey anthony murder case could soon me to an end. jurors are expected to begin deliberations as early as tomorrow. >> they will have to decide the

case without hearing anthony speak for herself. she decided not to take the witness stand. abc's jim afly reports from orlando. >> reporter: caylee anthony disappeared from her orlando, florida, home and on to america's tv screens at age 2. anand caylee would have been 5 her mother casey stood before a judge, her nationana sensation f a murder trial coming to a close. the defense resting. all without the jury hearing firsthand testimony from the woman who from the beginning has been suspected of suffocating her toddler to death. >> you understand that your decision to testify or not testify is solely your decision and your decision alone? >> yes, sir. >> casey anthony didn't testify because she would have gotten absolutely skewered by prosecutors. >> reporter: for three years casey anthony's every move has been watched, criticized for partying while others searched for her daughter. after her arrest, telling her parents in a jailhouse visit they should feel sorry for her.

>> i'm just as much of a victim as the rest of you. >> reporter: when anthony's trial began, prosecutors linked her to chloroform and duct tape. the alleged murder weapons. and tore apart her first alibi, that she left her child with a nanny who in the end did not exist. and now the jury must decide if they believe an explosive defense which began with a whole new story. claims of caylee dieing in a swimming pool accident. her mom too panicked to call police. followed by accusations that casey was trained to lie by her allegedly abusive father, who then helped her hide the body. claims he denied. >> did you dispose of the body of your granddaughter? >> no, i did not. >> reporter: jim avila, abc news, orlando, florida. investigators in massachusetts s e trying to figure out how a body went undiscovered for more than two days in a public pool. marie joseph's body was pulled from the fall river pool tuesday. it had been overlooked by lifeguards.

health inspectors and other swimmers. a little boy that joseph was supposed to be watching said she went under and never surfaced again. a passenger dozing on a red eye night from seattle to alaska was awakened by something crawling on his arm. what he saw horrified him. >> i looked down and thought it was s little bug. i brushed it off. wind seconds i felt it crawling on my hand again. i looked up, oh my god, it's a scorpion. >> ellis got stung but he's okay. the airline suspects the scorpion got on board during a stop in texas. they've offered him two round-trip tickets on another air alaska flight. hopefully it's been gone over, looking for bugs. from the air to the coast of north carolina where a shark bit a 10-year-old girl playing near the shore. cassidy was knee-deep when the shark pulled her down twice and tore her leg open. she was airlifted to the hospital but she could go home this weekend. this weekend is one of celebration. and that unfortunately gets some people into trouble.

new study shows alcohol-related visits to the emergency room more than double among underage boys on the fourth of july weekend. for girls, trips to the e.r. rises only slightly. the study author's advise parents to discuss alcohol use with their children of either gender early and often. in sports this morning, bounced checks for some employees of the l.a. dodgers. the team filed for bankruptcy this week, freezing some accounts. those paychecks have been reissued. in addition to more sports let's take a look at espn news. >> good morning. cc sabathia looking to become a member of the 11 club in the bigs. sabathia facing former teammates from his brief stint in 2008. sabathia matching his career high with 13 strikeouts. also played on the 4th in 2007 with cleveland. getting the offense behind him. send that t xt message.

300th career home run for mark teixeira. yankees up 3-0. back to sabathia. and every batter that whiffed, came on his swinging third strike. in 7 2/3 innings of work he gave up 6 hits and 2 walks. yankees blanked the brewers 5-0. the red sox and phillies. cole hamels, jon lester, 0-2. top four. oh-oh. look out. adrian gonzalez. off hamels' glove hand. the easy play a a first for the out. he's in pain. leaves after four. x-rays were negative and he'll make his next start. top eight, red sox up 3-0. make that 4-0. for the sun devils. dustin pedroia with the solo bomb. next batter. jason varitek. yep, that's gone too. second solo home run of the game for him. the red sox with back to back jacks. the red sox win 5-2.

jon lester ends up getting the win. this is fascinating stuff. ghostly, never before seen images of the "titanic" have just been released taken last year by a 3d camera. >> in one of these you can see the last remaining lifeboat crane. those lifeboats were launched before they were full as people famously. >> another image shows where the metal hull of the ship ripped in half. these are the windows of the famous luxury suites. >> another image shows the captain's quarters. the choice of fresh or salt water to bathe in. incredible pictures. coming up next, stories we'll be following later today. plus in monaco was there nearly a runaway bride? the count on chevy event is here.

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can your moisturizer do that? [ female announcer ] dermatologist recommended aveeno has an oat formula, now proven to build a moisture reserve, so skin can replenish itself. that's healthy skin for life. only from aveeno. now a look ahead at the stories we'll be watching on this friday. former imf head dominique strauss-kahn could have his house arrest lifted today now that the case against him appears to be unraveling. abc news that is learned there are significant issues with the accuser's credibility. the nigerian-american man who flew across country with an outdated boarding pass and fake i.d. is due in court. there appears to be no connection to terrorism.

the case raises troubling questions about airport security. leon panetta begins his new job as top man at the pentagon. he becomes defense secretary after his successful term as cia chief. replacing him will be general david petraeus after being confirmed by the senate. an nba lockout is in place this morning and there are no talks on the horizon. the contract between owners and players expired at midnight with the two sides very far apart. all league business is on hold and the next season is at risk. we're playing at your wedding, the eagles. the concert kicks off festivities for the royal wedding of monaco prince albert. there are rumors the bride to be had her passport confiscated so she couldn't run away. crazy rumors there. back to her native south africa. coming up later the biggest party on the planet is about to get started. we're talking about beyonce. she's getting ready to perform in new york's central park and fans have been lining up for hours. that is coming up on "gma."

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morring. >> the royal pair will jet to california income week. but first a coast to coast tour of canada. bob woodruff reports from ottawa. >> reporter: the royal couple arrived to a boisterous welcome. >> we love this country. we've been looking forward to this moment for a very long time. >> reporter: first stop, the national war memorial where they laid a wreath and some flowers. then it was a stroll down a street surrounded by those eager to wave a flag and catch a glimpse of the electrifying couple. to get a sense how popular this couple has become in canada, you should know exactly a year ago queen elizabeth was here. about 100,000 people lined the streets to see her. the estimate this time, about 1 million. all eyes are on catherine and her style. on this trip she'l'l be wearing no fewer than 40 different outfits in just 11 days. >> everything they do, everything they touch at the

moment is midas. it turns to gold. >> reporter: in polls, many brits and canadians say they would prefer it if prince william would ascend the throne instead of his father prince charles. it is a new generation. >> i think i would like to see him on the throne, i really do. i think he connects wellllith the people. so i think he'll do a good job. >> reporter: without question this couple has really revitalized the monarchy here. prince also spoke french in this bilingual country. he had a few fumbles but his pronunciation was perfect, a little more parisian than canadian. they love the fact that he spoke french and gave him a huge cheer. >> pretty interesting. all 1,300 journalists are covering this. you'd expect her to show up for a big group of people. princess catherine just travels with her hairdresser. >> the very first world tour to canada was 225 years ago. incidentally, happy canada day. >> that's right. and happy fourth of july coming up this weekend. bi